Core Viewpoint - The mobile display panel market is experiencing high operating rates due to strong demand driven by the traditional peak season in Q3, with market prices showing slight declines [2][3]. Group 1: a-Si Panels - a-Si panels continue to see strong demand in the mid-to-low-end market, but increased competition at the module level is leading to slight price declines [3]. - Despite stable screen prices, core components like driver ICs are in a downward cycle, and a-Si module prices are expected to continue to decrease slightly due to intense competition and price pressure from brand clients [3][4]. Group 2: LTPS Panels - The demand growth in the automotive display market, along with the iteration of notebooks and tablets, keeps LTPS production lines operating at full capacity [3]. - However, demand for LTPS in the smartphone sector remains sluggish, prompting some panel manufacturers to lower prices further to secure new project orders, with an expected price drop of $0.1 [3][4]. Group 3: AMOLED Panels - The demand for rigid AMOLED panels is declining due to the accelerated replacement by flexible panels, leading to short-term price stabilization at low levels [3]. - Flexible AMOLED panels are nearing full production capacity due to seasonal stocking, but aggressive pricing strategies by some manufacturers have initiated a downward price trend [3][4].

Core Viewpoint - The rise of Chinese panel manufacturers and TV brands is intensifying competition for overseas companies, impacting their market share and profitability [2]. Group 1: Profitability of Major Companies - Samsung's VD/DA business reported an operating profit margin of 1.4% in Q2 2025, down 0.7 percentage points quarter-on-quarter and 2.0 percentage points year-on-year. The company plans to improve profitability by capitalizing on peak season demand and developing high-end TVs [4]. - LG Electronics' MS business experienced an operating profit margin of -4.4% in Q2 2025, a decline of 4.5 percentage points quarter-on-quarter and 6.9 percentage points year-on-year, facing challenges from Chinese TV brands. LG aims to enhance its WebOS platform and expand its influence in the Southern Hemisphere [4]. - Hisense's TV business is performing well, with continuous growth in shipment volume and market share, maintaining an operating profit margin around 5% in recent quarters [4]. Group 2: Panel Manufacturers' Performance - Samsung Display's (SDC) operating profit margin was 7.8% in Q2 2025, although it has decreased both quarter-on-quarter (by 0.7 percentage points) and year-on-year (by 5.4 percentage points) [7]. - AUO reported an operating profit margin of 2.2% in Q2 2025, remaining positive for two consecutive quarters, while Innolux (INX) had an operating profit margin of -1.4%, remaining negative for four consecutive quarters [7]. - BOE, as a leading domestic panel manufacturer, continues to maintain a positive operating profit margin in its TV panel business [7]. Group 3: Market Trends and Challenges - Domestic flexible AMOLED smartphone panel manufacturers are actively expanding capacity and increasing shipments, achieving a combined market share of over 50% by 2024, which is impacting SDC's profitability [10]. - SDC's quarterly profitability is subject to significant seasonal fluctuations, with operating profit margins decreasing from 12.4% in H1 2023 to 10.4% in H1 2024, and further down to 8.1% in H1 2025 [10]. - AUO's profitability has outperformed INX in recent quarters, attributed to a lower proportion of traditional display business, which has a lower gross margin compared to commercial and automotive displays [10]. Group 4: Strategic Developments - Innolux is actively developing Micro-LED and FOPLP businesses, although these new ventures are unlikely to generate profits in the short term. The company announced the acquisition of Japan's Pioneer in June 2025 to strengthen its automotive display business, which may improve profitability post-acquisition [11].

Core Viewpoint - The mobile panel market is experiencing strong short-term demand driven by the "National Subsidy" policy and mid-year promotional inventory needs, with price stability overall but differentiation among technology types [4]. Group 1: Market Dynamics - The mobile panel market is currently influenced by the "National Subsidy" policy and seasonal inventory demands, leading to sustained strong demand [4]. - Recent fluctuations in U.S. tariff policies have introduced significant uncertainty, causing market panic and a severe wait-and-see attitude, which may impact the global mobile industry and reshape export patterns to the U.S. [4]. - Panel manufacturers need to demonstrate higher market sensitivity and strategic flexibility to cope with potential cost increases and changes in market demand [4]. Group 2: Technology-Specific Insights - **a-Si Panels**: Demand for a-Si brands has increased with more project numbers, leading to full production lines. Prices for mobile products have been slightly raised in South China, but panel and module prices provided to brands have not increased [4]. - **LTPS Panels**: Demand for LTPS panels in mobile applications remains weak, but growth in automotive panel demand has kept LTPS production lines at full capacity, maintaining price stability [4]. - **AMOLED Panels**: Domestic manufacturers are shifting towards flexible AMOLED, leading to a decline in demand for rigid AMOLED, which has seen a price drop of $0.5. Flexible AMOLED demand remains strong, with high production rates, although manufacturers are trying to maintain price stability despite requests for price reductions from terminal manufacturers [4]. Group 3: Future Price Trends - CINNO Research predicts that the price trends for a-Si panels in April and May 2025 are yet to be observed; LTPS panel prices are expected to remain stable in the short term; rigid AMOLED panel prices are anticipated to decrease by $0.5; and flexible AMOLED panel prices are expected to remain stable in the short term [5].